Retailers and environmentalists support the measure. It leaves it up to consumers to figure out what they want, and this amounts to a 7% (3.5% in enterprise zones) discount over non-Energy Star products. Given that many appliances are Energy Star rated, this means that entire classes of products would become exempt from sales tax if this measure is adopted.
On an item like CFLs, the tax exemption might see the cost to a consumer drop $.14 (figuring $2 per CFL). It would still be more expensive than an incandescent lamp with the same output, but more people might be willing to switch once the savings over the life of the lamp are figured in.
The bill, A3025/S1778, would provide a sales tax exemption for the following Energy Star rated products: compact fluorescent light bulbs, ceiling fans, clothes washers, dehumidifiers, dishwashers, refrigerators and freezers, residential light fixtures, room air conditioners, and room air cleaners.
Other products, like televisions, radios, etc., would not qualify for the exemption.
If anything, the exemption doesn't go nearly far enough if you want to improve and encourage conservation. It should include insulation and other items that would improve the energy efficiency of homes around the state like doors, garage doors, and windows. The state already has an exemption for solar energy systems, but not one for heat pumps, geothermal, or biodiesel. These savings will add up over time, not only to taxpayers who will be able to save thousands of dollars over the life of the products, but the state will be able to reduce emissions from all sources and slow the increase in power demand, which are laudable goals.
That said, I don't give the bill much of a chance, despite the merits are present because the state is in serious fiscal shape and Gov. Corzine wouldn't want to lose the sales tax revenue, even though it might bolster the corporate tax revenue (the bottom line that companies pay to the state in the corporate tax) and might also help the state reach Corzine's energy conservation goals. If more people are spending on new more efficient products, it would help reduce energy consumption going forward and businesses would see more people come in to buy products if they were saving on the sales tax.
No comments:
Post a Comment